Lukoil posts $9 bln net profit for 9M, below forecast
MOSCOW. Nov 25 (Interfax) - Lukoil closed the nine months ended September 30, 2011 with net profit of $9 billion to US GAAP, up from $6.82 billion in the same period of last year.
Net profit was $2.2 billion in Q3, compared with $2.818 billion a year previously.
The figures were lower than the $9.832 billion and $3.064 billion that analysts predicted in a consensus forecast for Interfax.
Lukoil shares responded negatively to the below-forecast financial report on Friday. By 1:10 p.m. Moscow time, their price on the MICEX Stock Exchange had fallen to 1596.5 rubles per share, down 2.2% from yesterday's closing price.
Lukoil said earnings before taxes, depreciation and amortization (EBITDA) rose 27.8% year-on-year in 9M to $15.316 billion, and revenue grew 29.9% to $99.101 billion.
"The increase in our net income was mainly due to a sharp increase in hydrocarbon prices in 2011, compared to the previous year. At the same time, our results were affected by an increasing tax burden and the appreciation of the Russian ruble. Our net income for the third quarter of 2011 was affected by accrual of income tax expense related to currency translation gains, reported by Russian subsidiaries, as well as by significant dry hole costs write-offs. Whereas our income for the third quarter of 2010 was supported by a $438 million gain from a successful completion of the legal dispute regarding one of our joint ventures in Kazakhstan," Lukoil said.
Free cash flow in 9M was $7.712 billion, up from $6.964 billion in the same period of last year. Capex rose 19.7% to $5.6 billion.